1
Schedule I
to Asset Purchase Agreement
between West Coast Entertainment Corporation and
the Sellers and Principals Identified Below
Section of Agreement
in Which Term, Item or
Information is Referenced Term or Item
------------------------- ------------
Recital Name, Address and Principal Office of Each Seller:
Xxxx Xxxxxx Corp.
dba West Coast Video
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Cochise Corp.
dba West Coast Video
Andorra Shopping Center
Xxxxx Avenue and Xxxxxxxxx Xxxx
Xxxxxxxxxxxx, XX 00000
Xxxx Xxxxx Corp.
dba West Coast Video
Xxxxxx Hill Shopping Center
0000 X Xxxxxxx Xxxx
Xxxxxx Xxxx, XX 00000
Recital Principal:
Mr. Xxxxxxx Xxxxxxxx
0 Xxxxx Xxxxx
Xx. Xxxxxx, XX 00000
1.1(a)(ix) Trade Names: West Coast Video
0
Xxxx Xxxxx Xxxxx xx Xxxxxx Xxxxxx
1.1(c) Stores, Reflecting Street Address of Each Store, and its Owning Seller:
Total Number of Stores: Three
Xxxx Xxxxxx Corp.: 0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Xxxxxxx Xxxxxxxx, President
Cochise Corp.: Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxx
Xxxxxxxxxxxx, XX 00000
Xxxxxxx Xxxxxxxx, President
Xxxx Xxxxx Corp.: 0000 X. Xxxxxxx Xxxx
Xxxxxx Xxxx, XX 00000
Xxxxxxx Xxxxxxxx, President
1.3(a) Purchase Price: $1,088,750
1.3(b) Cash Percentage: 60% ($653,250):
Payable at Closing: $100,000
Payable 1/3/97: $553,250
1.3(b) Allocation of Purchase Price Among
Sellers:
Xxxx Xxxxxx Corp.: 1/3
Cochise Corp.: 1/3
Xxxx Xxxxx Corp.: 1/3
1.3(c) "Net Operating Cash Flow" shall be equal to (i) the pre-tax income from
the Stores for the 12-month period ending on July 31, 1996, plus (ii)
all debt-related interest expense for the Stores and depreciation and
amortization expenses for the Stores for such 12-month period, plus
(iii) all royalty expenses (if any and if expensed) attributable to such
stores during such 12-month period, less (iv) all rental product
purchases for the Stores during such 12-month period (including revenue
sharing expenses if not previously expensed), less (v) all earned income
interest for such 12-month period; with such components of Net Operating
Cash Flow determined in accordance with generally accepted accounting
principles applied consistently with the Sellers' past practices.
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1.4 Assumed Liabilities:
(1) All obligations of the Sellers relating to periods after the
Closing under the Leases specified on Schedule 2.11 which become due and
payable after the Closing Date.
(2) All obligations of Cochise Corp. relating to periods after the
Closing under that certain Computer Lease (Altos 900 Computer) between
Cochise Corp. and Xxxx Atlantic TriCon Leasing and Finova Manufacturer &
Dealer Services (Customer Number 7143998).
(3) All obligations of Xxxx Xxxxxx Corp. relating to periods after
the Closing under that certain Ticketmaster Agreement dated November 27,
1993.
(4) All obligations of Cochise Corp. relating to periods after the
Closing under that certain Ticketmaster Agreement dated June 11, 1994.
1.6 Closing Date: November 15, 1996
2.1 Type of Entity:
Xxxx Xxxxxx Corp.: S corporation
Cochise Corp.: S corporation
Xxxx Xxxxx Corp.: S corporation
2.2 Each Seller's State of Organization, and Authorized and Issued Stock (or
Other Interests), and Identity of Holders of All Legal and Beneficial
Interests in Each Seller
Xxxx Xxxxxx
Corp.: Pennsylvania corp.
Authorized Capital: 1,000 shares Common
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Stock
Shares Outstanding: 100 Common
Sole Shareholder: Xxxxxxx Xxxxxxxx
Cochise
Corp.: Pennsylvania corp.
Authorized Capital: 1,000 shares Common
Stock
Shares Outstanding: 100 Common
Sole Shareholder: Xxxxxxx Xxxxxxxx
Xxxx Xxxxx
Corp.: Pennsylvania corp.
Authorized Capital: 1,000 shares Common
Stock
Shares Outstanding: 100 Common
Sole Shareholder: Xxxxxxx Xxxxxxxx
2.5(c) Minimum Net Operating Cash Flow: $325,000
7.10 Amount of Cash (Per Store) to Be Left at Stores,
on Closing Date: $400.00.
14 Address for notices for purposes of Section 14:
To the Principal: Mr. Xxxxxxx Xxxxxxxx
0 Xxxxx Xxxxx
Xx. Xxxxxx, XX 00000
With a copy to: Xxxxxxx X'Xxxx, Esq.
Dilworth, Paxson, Xxxxxx
and Xxxxxxxxx
Commerce Atrium Building
1701 Route 70 East
Box 2570
Xxxxxx Xxxx, XX 00000
